The Hindu Business Line : `Centre seeking sector-specific SEZ plan from Punjab'

THE Central Government is ready to grant approval if the Punjab Government comes out with a sector-specific Special Economic Zone (SEZ) in Amritsar as the State Government could not acquire 1,000 hectares for establishing a multi-product SEZ in Amritsar as originally envisaged.

Responding to a calling attention motion on the "situation arising out of non-setting up of a special economic zone in Amritsar (Punjab) as announced by the Prime Minister and steps taken by the Government in this regard," raised by the BJP member, Mr Navjot Singh Sidhu, in the Lok Sabha, the Union Minister for Commerce and Industry, Mr Kamal Nath, recalled that the Prime Minister, Dr Manmohan Singh, during his interaction with the State Government on his visit to Amritsar on October 1, 2004 had conveyed that the Centre would extend all necessary help to the Government of Punjab to set up a SEZ at Amritsar.

Mr Kamal Nath said the policy of the Central Government was to encourage and facilitate zones being set up in the private sector or joint sector in association with the State Government or by the State governments themselves.

He said that SEZ is not merely a demarcation of an area under legal framework to attract units but units have to be located inside the zones. The minimum area requirement for a multi-product SEZ is 1,000 hectares and above, though there is no such area specification for product-specific or port/airport-based SEZs.

The Minister said that since the State Government indicated its difficulty in obtaining 1,000 hectares for setting up of a multi-product SEZ in Amritsar as land is fragmented and expensive, it now intends to set up a sector-specific SEZ.

Specific product group to be promoted by the zones is to be finalised by the implementing agency, he said adding that a proposal for setting up of a SEZ at Sri Harigobindpur Road (Mehta Road) adjoining the existing industrial focal point in Amritsar by Punjab Small Industries and Export Corporation Ltd (PSIEC) was received in January 2005 through the State Government.

The proposal to set up a sector-specific SEZ has been recommended for grant of "in-principle" approval. Once the Government of Punjab identifies the specific product group of the proposed SEZ, it would be processed for grant of necessary approval, he said.

Earlier, Mr Sidhu moving the motion to draw the attention of the Minister underscored the importance of the Prime Minister's vision to establish 1,000 hectares SEZ in Amritsar when he visited the place last year.

He said that while the Government has given special packages to States like Himachal Pradesh, Jammu and Kashmir, it could as well extend such a package to Amritsar in Punjab by establishing this SEZ.

Amritsar is virtually "a gateway to India" not only with neighbouring countries like Pakistan but also to Central Asian countries. He said that if one Maruti factory could light up Gurgaon in Haryana, a SEZ in Amritsar on the scale envisioned by the Prime Minister would do wonders to the trade volume of the entire country.

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